In 2011, there were nearly 500 major new construction projects for water conservancy projects, with a total investment of nearly 200 billion yuan.

There are 70 new major construction projects for the railway. The total investment of the project exceeds 700 billion yuan.

In addition, investment plans for highways, energy, and chemical projects have also been opened.

Different construction projects pull different product types. Excavators, loaders, bulldozers, graders, road rollers, truck cranes, crawler cranes, piling machinery, concrete machinery, pavers, etc. Commonalities are also different.

But in any case, these figures mean huge wealth for construction machinery companies and users. Although procurement of construction machinery can only get a glass and not too much embarrassment in these data, it is enough to make the whole industry. We are very excited for 2011.

Excavators are fully competitive. Since 2010, the country’s huge investment in road construction, real estate construction, and railway construction has directly driven the demand for excavators. According to statistics, from January to December of 2010, a total of 165,804 hydraulic excavators were sold nationwide, an increase of 78.25% year-on-year, creating the best results of the year. As the largest product in the construction machinery industry market, the “blowout” phenomenon of the excavator market exceeded everyone’s expectations in 2010. The huge market inertia and continuous policy push will continue to promote the rapid development of the excavator market in 2011.

Although the growth rate of the construction machinery industry will fall somewhat under the pressure of the country’s tightening of macroeconomic regulation and regulation of the real estate industry, the large-scale construction of affordable housing and the country’s 4 trillion yuan will be invested in water conservancy facilities in the next 10 years. Construction will undoubtedly ease the above pressures and bring about new growth points. At the same time, as the global economy recovers and the export market picks up, it will also bring new opportunities to excavator manufacturers. During the “Twelfth Five-Year Plan” period, the excavator will become a key force in construction machinery products, directly driving the construction machinery industry to achieve rapid growth. According to the prediction of the excavating machinery branch of the China Construction Machinery Industry Association, the sales volume of China's excavator market will reach 190,000 units in 2011, an increase of around 15% year-on-year. This will further stimulate the company's investment in the capacity of excavators.

Among local companies, Sany Heavy Industry expects that the capacity of excavators will reach 30,000 units in 2011, 1.5 times more than in the same period of 2010; Xugong and Liugong will have over 10,000 units of excavator capacity; Xiagong and Yuchai plans to launch an annual output. Over 10,000 Taiwan projects and an annual output of 5,000 medium and large excavator production line projects; and new enterprises such as Fuan Heavy Industry, Wuliangye Pushche Heavy Machinery plan to fully break into production capacity of 10,000 units.

As the market continues to expand and capacity continues to increase, how to solve the problem of low market share in the local brand market has become a top priority. In the domestic excavator market in 2010, a total of 46,828 domestic Chinese brands were sold. Although the sales volume of 11 major domestic manufacturing companies in 2010 increased by nearly double compared with the same period in 2009, foreign brands accounted for approximately 71.7% of the total. 28.3%.

In the face of a huge market space, R&D centers are set up, focusing on technological innovation; strengthening the research and development of new products and improving the technical performance of the whole machine; paying attention to basic and forward-looking research, and advancing toward hybrid and intelligent excavators, and improving the local brand market Occupancy will play a role. At the same time, spare parts will still be a key factor restricting the expansion of domestic excavator companies. Li Hongbao, secretary general of the China Construction Machinery Industry Association Mining Machinery Branch, believes that the development of domestic excavator companies has been severely constrained by the production of key components. Although the industry branch cooperates with the ministries and commissions of the country to formulate relevant development plans, domestic companies have also increased self-development productivity, but in the next two to three years, the industry will still be in a bottleneck stage of development. At present, we can only achieve a certain form of strategic alliance by establishing closer cooperation with foreign key component manufacturers so as to better guarantee the product supply rate and broaden the future market.

In response to the existing deficiencies, many domestic host manufacturing companies are or have already found ways to increase brand competitiveness in the short term. For example, Sany Heavy Machinery Co., Ltd., through the further cooperation with foreign well-known parts and components companies, developed parts specifically for the Trinity excavator to improve product performance. At the same time, companies should strengthen the R&D and production of parts and components, increase the proportion of their own parts, and launch energy-saving and environment-friendly excavators that meet Euro III and Euro IV emission standards, improve the level of product intelligence, information, and automation, and enrich product features. Comprehensively improve the overall reliability of products, and gradually narrow the gap between European and American product quality, and gradually upgrade existing models.

In the face of future market expectations, domestic excavator production capacity has basically been able to meet the current market demand. Enterprises continue to expand production, and the influx of enterprises outside the industry has increased uncertainties in the future development of the industry, how to reasonably avoid market risks and avoid Vicious competition is a problem that cannot be ignored in the rapid development of an enterprise.